Executive general manager of NAB s corporate, institutional and specialised banking, David Hornery, presents Robert Radford with the Agribusiness Leader of the Year Award at the 2011 NAB Agribusiness Awards for Excellence. Picture: Cameron L Estrange.
Executive general manager of NAB s corporate, institutional and specialised banking, David Hornery, presents Robert Radford with the Agribusiness Leader of the Year Award at the 2011 NAB Agribusiness Awards for Excellence. Picture: Cameron L Estrange.
That's the take-home message from the snapshot of beef demand by Australian consumers contained in MLA's mid-year update, which shows beef demand at home on a slight upswing but threatened by the price competitiveness of cheaper proteins.
With the Australian economy relatively slower in the first half of the calendar year, and retail and food service demand sluggish, total utilisation of Australian beef for 2012 is still forecast to reach 740,000 tonnes carcase weight (cwt), up 2.8 percent on 2011.
The picture gets better next year as beef utilisation in the Australian market is expected to increase 3.6pc to 767,000 tonnes cwt assisted by rising supplies, subdued retail beef prices and, potentially, by some recovery in consumer confidence and spending.
According to MLA economist Tim McRae, the ongoing retail price war between the two major supermarkets continues to see pressure upon retail meat prices, including for beef.
In the March quarter of 2012, the average retail beef price was $15.54/kg - largely unchanged over the previous 18 months and 4.5pc below the peak of $16.27/kg three years ago.
"However, comparing the change in prices across beef and chicken over the past 12 months, beef prices have been virtually unchanged, while chicken prices have fallen 7pc highlighting the improved price competitiveness of chicken compared to beef at a time when consumers are looking to minimise spending," he said.